The Retail Banking Report 2019 has shown that fast emerging digital deposit and payment platforms globally, are beginning to change the financial transaction behavior of bank customers by taking them away from the physical branches to digital platforms especially in developed economies.
The new report titled, ‘Innovation in Retail Banking Report 2019,’ authored by Jim Marous, co-publisher of The Financial Brand, and publisher of the Digital Banking Report, along with Infosys Finacle, harmonized perspectives from over 350 senior banking leaders from financial services organisations worldwide.
It averred that latest technologies including artificial intelligence, machine learning, blockchain, the Internet of Things (IoT), and other innovations are underpinned by data and advanced analytics, alongside changing consumer behavior. It noted that the trend will continue to force financial institutions to modify their business models from giving less emphasis to physical structures to fintechs and banking without walls.
The report made it clear that amongst the first set of victims of financial technology, just like the Post Offices which are becoming irrelevant in many climes including Nigeria, will be retail banking arm of financial services.
Otherwise, the report argued that the status quo in retail banking is tottering and under siege from new technologies, new consumer expectations, new competitors, and new regulations.
The report further advanced that in the next five years of financial services, stiff competition for business will tailor payments and lending solutions and large tech firms, small fintech organisations may end up rubbishing banks that failed to wise up and adopt relevant technologies to remain in business.
However, for banks that cannot do it alone, the report advised for operational partnerships between with solution providers as only related alignments will be protect banks with large branch networks.